What Is a Run on the Fund? A run on the fund is a situation in which a hedge fund, or other asset pool, faces a growing number of requests for redemptions from investors. A run on the fund may happen for several reasons, but is usually the result of poor performance of underlying assets. This
What Is the Russell 1000 Index? The Russell 1000 Index is a stock market index used as a benchmark by investors. It is a subset of the larger Russell 3000 Index and represents the 1000 top companies by market capitalization in the United States. The Russell 1000 is owned and operated by FTSE Russell Group
What Is the Russell Midcap Index? The Russell Midcap Index is a market capitalization-weighted index comprised of 800 publicly traded U.S. companies with market caps of between $2 and $10 billion. The 800 companies in the Russell Midcap Index are the 800 smallest of the 1,000 companies that comprise Russell 1000 Index. The Russell 1000
What Is a Right of First Offer? A right of first offer (ROFO) is a contractual obligation that allows the holder to purchase an asset before the owner tries to sell it to someone else. If the right holder is no longer interested in the property, the seller can then sell it to a third
What Is a Rogue Trader? A rogue trader is a trader who acts recklessly and independently of others, usually to the detriment of the institution that employs the trader and perhaps clients. Rogue traders typically play with high-risk investments that can produce huge losses or gains. Rogue traders, though, are only labeled as such if
What Is Roll Forward? Roll forward refers to extending the expiration or maturity of an option, futures contract, or forward by closing the initial contract and opening a new longer-term contract for the same underlying asset at the then-current market price. A roll forward enables the trader to maintain the position beyond the initial expiration of
What Is Rolling EPS? Rolling EPS gives an annual earnings per share (EPS) estimate by combining EPS from the past two quarters with estimated EPS from the next two quarters. It may be calculated with the following formula: Rolling EPS = (Net income from the previous two quarters + next two quarters – preferred dividends)
What Are Rolling Returns? Rolling returns, also known as “rolling period returns” or “rolling time periods,” are annualized average returns for a period, ending with the listed year. Rolling returns are useful for examining the behavior of returns for holding periods, similar to those actually experienced by investors. Looking at a portfolio or fund’s rolling returns will
What Is a Rollover? A rollover may entail a number of actions, most popularly the transfer of the holdings of one retirement plan to another without creating a taxable event. A rollover may also entail reinvesting funds from a mature security into a new issue of the same or similar security, or moving a FOREX (FX) position
What Is a Rollover Credit? A rollover credit is a net payment of interest received by a forex trader who holds a long position on a currency pair overnight when the long currency pays a higher rate on interest than the short currency in the pair. An overnight position in FX is one that does not close on the same
